Is the increasing popularity of streaming music around the globe a tiding or a threat? Topic: Digital world 2000 words Chao Yang, Beijing 1 Question: Is the increasing popularity of streaming music around the globe a tiding or a threat? Introduction: In this digital age which cell phone is gradually dominating people’s life, subscribe a music app like “apple music” and begin enjoying numerous music has become commonplace for people around the globe in developed countries. This phenomenon is attributed to an emerging technique—— streaming music. It refers to music that is stored online without requiring to download. (Sharma,2011). Digitized music has caused the industry changes, including whole industrial chain of production, construction, sales, and advertising. Streaming music apps has become prevalent in many countries, Spotify in America, WangYiYun in China, and Apple music, which has global market. Since Apple music listed in 2015 until the march 2018, the paid subscribers had reached 38000K. Among these, users are from 115 countries around the globe (Zhang,2018). It’s easy to see how streaming music is becoming prevalent around the globe and affecting more countries. However, controversy followed its popularity. Issue： In this case, some argue that streaming music opens a convenient way for consumers to enjoy music. However, others argue that streaming music is destructing the well-established music industry structure. The following article will discuss about perspectives regarding the issue of whether the increasing 2 popularity of streaming music around the globe. The prevalence of streaming music is a tiding Since streaming music became main stream, consumers’ listening experience became much more convenience. From the interview to Zhang, a music live show planner from China, he reported, before streaming music appears, he needs to buy expensive record player and searching from store to store for the new-released album. However, with the emerging of streaming music, now, all he needs to do is to spend 10 Yuan per month to subscribe Apple music, and start enjoying numerous music. (Wu,2019). For such music consumer’s perspective, streaming music enable the easy access to the music which brings considerable convenience. The cause of this perspective is that streaming music make all these hassles for traditional music playing process unnecessary and simplify the consumption process. As a consequence of this convenience, consumers could spend less while enjoying from the huge music pool. As a result, this convenience will gradually change the habit of music consumers and encourage more client for streaming music (Chen, 2019). Also, streaming music stimulates the development of global music selling industry. Globally, “streaming revenue grew by 34.0% and accounted for almost half (47%) of global revenue” (IFPI Global Music Report, 2019). This global perspective suggests that streaming music has become the main composition of music sales around the globe, suggesting it’s vital for the 3 thriving of music industry. Also, multiple nations’ industrial growth caused by streaming music serves as evidences for this argument. “Driven by a 32.9% increase in paid subscription streaming, Latin America was the fastestgrowing region (+16.8%), and the Asia and Australasia region (+11.7%) grew to become the second-largest region for music revenue.” (ibid). Specifically focusing on Chinese market, due to the report in 2017, Chinese digital music output value reaches 52.9 billion Yuan, and the growth rate is 6.2%. (Zhao, 2017) *(ibid) This high growth rate enables the future development of the industry around the globe. The cause of this development is due to the new business structure of streaming music, which brings a profit chain including subscription fee, advertisement, live streaming etc. Couple with the increasing consumers turn from buying record to music Apps, streaming music significantly pushes the output for music. The consequence of this development brought by streaming music is the forming of new industry related to streaming music, such as streaming music apps. This will result in new business opportunities and economic growth for nations around the globe. 4 Comparing the causes, the first argument is caused by the development of technology thus enable the simplification of listening process, while the benefit noted in second argument is caused by the profit chain derived from streaming music business. Among the two causes, the second argument’s cause is more significant because it is influencing the whole music industry’s development and it account for most of the sales in modern music market, while the first one only account for individual users’ interest. Comparing the consequences, the first is directly influencing the future pattern of music listening experience, and the second one is affecting the future music industrial structure and profit model. In this case, the second argument’s consequence has more impact because its extent covers not only firms that producing music service, which might change their selling strategy, but also nations’ economy, new jobs might be generated. To keep this positive trend, course of action should be taken by governments, for example to raise funding to give subsidies to support big streaming music companies, and to solidify related legislations to protect the music market. The first perspective looks in to the issue of streaming music in the perspective of users. While it is the case that only individual perspective is involved in this opinion, it is important to mention that the users are the one who receive the services in the music industry. Therefore, it is largely relevant. The source in this perspective is a personal anecdotal experience. While it’s the case that it is subjective and doesn’t contain any facts that can be verify, which makes it unreliable, it is important to note that this delivery of daily scene can easily connected to the readers and created resonance, thus 5 making it more persuasive. Overall, the first perspective is valid. The second perspective looks into the benefit of streaming music in the perspective of global music industry and national economy. Comparing to the first perspective about users, the second perspective takes a macro viewpoint that comprehensively analyze the issue. However, the perspective is geographically biased. In the sources from IFPI, a global conclusion can’t be reached by only considering the impact on developed countries in which streaming music can be easily adopted and fails to take into account the developing countries which streaming music are not implemented. While this is the case, the report from IFPI include sufficient statistics as evidence of growth in industry, which can be verified by checking official record. As a result, the source is reliable to a large extent. The prevalence of streaming music is a threat. First, the unwillingness to pay for the streaming music account for the loss to both streaming music companies and artists. Due to the report by China Audio-video and Digital Publishing Association in 2017, over 50% of users of streaming music in China think that they shouldn’t pay for the streaming music. And 36% of users have never paid for any services. (Zhao, 2017). This is also a problem in the U.S. and it created huge losses for streaming music companies. Data shows that, in 2017, the net loss is still 15 billion dollars. This is due to only 40% among all the users pay for Spotify services. (Statista,2017). All these problems arrive because of the immaturity 6 of majority user’s cognition toward the paying because consumers are used to enjoying free music online because of the spread of free pirate music. (Zhang, 2019). The consequence of this is that artist cannot get the profit they deserved, and this discourages new artist from joining the industry because it is unprofitable. Second, Streaming music is taking over the global market for Physical disc and digital album. While streaming music is becoming popular, industries that are replaced by suffers from the loss of sales. Due to data from RIAA, while Total revenues from streaming platforms in the U.S. were up 43%, revenues from digital downloads fell 25%. Also, Shipments of CDs fell for 6% in 2017. (RIAA, 2017). Facing this decrease in revenue, firms are quitting this industry to avoid loss. Due to news from The Verge, Apple confirms it will stop taking iTunes LP submissions in 2018. (The verge,2018). That means, because of the taking over from streaming music, digital downloading platforms are going to be driven out of the market and become obsolete. This is because the substitutes like physical disc and digital album has lost their competitiveness in front of the convenient, cheap streaming music. The increasing access to internet and mobile devices also accounts for the loss of physical disc market. The consequence of this issue is the collapse of industries, which will lead to unemployment and lowering GDP for nations, thus affecting the economy Comparing the causes, the cause of unwillingness to pay is more significant, which is the false cognition towards paying and rampant pirate 7 music among market, which is very hard to regulate and this cause is a major threat of streaming music, while the cause of industrial taking over is much easier to solve and need less worry. To cover this loss, government could provide unemployment benefit to the people who lost their job in disc industry and giving subsidies to the digital music industry to help them with their transition toward streaming music services. Comparing the consequences, the industrial taking over’s impact is weaker because it focusing on two specific field in the music market, while the issue of unwillingness to pay directly relates to the profit model of the future music business globally. Course of action could be regulations that ban the spread pirate music. In 2015, National Copyright Administration of China requires all the streaming music services provider to take down all unauthorized music. (NCAC, 2015) This will bring stricter regulation to the market and protect streaming music firms’ profit. The first argument looks into the issue in the impact on artists and streaming music firms. As these two roles are the important components of music industry, their loss is very relevant to the streaming music market. Thus, making the argument more relevant to the topic and worth gathering more attention. The sources used in the argument is reliable. The report is from China Audio-video and Digital Publishing Association, which is a government affiliated department, therefore, the information provided can be considered authoritative as government is obligated to provide true information. As a result, those features made the source reliable. The second argument looks in to the issue in the perspective of physical disc and digital music industries 8 which are negatively affected. The source from RIAA contains sufficient statistics about the wane of those industries, as these factual evidences can be verified. Thus, the sources can be proving reliable. However, RIAA is a trade organization that comprise multiple record company, so vested interest is involved which lower its credibility. Overall, it seems solid but indeed not credible. Conclusion: The development of streaming music is inevitable. And we have to critically confront all the benefits and drawbacks of it by considering multi perspectives. Before the research, I used to only take the perspective of users and strongly believe that streaming music is an invention that brings so much convenience to my life, it not only let me access numerous music online, but also cost me a few moneys to enjoy this awesome service. I believed that it is a breakthrough for the music industry. However, after research, I found my perspective is too narrow and I failed to consider the issue in other perspectives. I found that the artists are suffering from the low profit because of peoples like me who are not willing to pay. (Zhang, 2019). And I also noticing that people around the world who are doing Physical discs and Digital downloading businesses are losing their jobs and streaming media are gradually driving those industry out of our vision. After knowing these facts, there is no point for me to still be confident about the prevalence of streaming music. It is destructing the industrial structure rather than improving it. However, nations are taking steps to set up legislation about copy rights. (Zhang, 2019). I believe that as long as 9 we and governments work mutually to tackle these issues. The future of music industry can still be prospective while we are enjoying its convenience. Reference: Sharma, M. (2011). Multimedia Streaming in Multicast Environment. International Journal of Advanced Research in Computer Science, 474 Zhang, B. (2019). 就想免费听歌，流媒体音乐烧的那些钱哪年才能挣回来？[online]中关村在线. Available at: https://chuansongme.com/n/2268827751025 [Accessed 22 Apr. 2019]. Wu, D. (2019). 音乐产业强势复苏，但流媒体仍在探索盈利模式. [online] Yicai.com. Available at: https://www.yicai.com/news/100148501.html [Accessed 23 Apr. 2019]. Chen, Y. (2019). 浅谈国内音乐产业中的流媒体服务. [online]Available at: http://www.doc88.com/p-5148952430130.html [Accessed 23 Apr. 2019]. Zhao, Z. (2017). China's music industry development report 2017. [online] Available at: http://www.chnmusic.org/news/20171103223140550737.html [Accessed 22 Apr. 2019]. IFPI.org. (2019). IFPI Global Music Report 2019. [online] Available at: https://www.ifpi.org/news/IFPI-GLOBAL-MUSIC-REPORT-2019 [Accessed 23 Apr. 2019]. Statista. (2017). Spotify | Statista. [online] Available at: https://www.statista.com/study/21423/spotify-statista-dossier/ [Accessed 23 Apr. 2019]. 10 Zhang, B. (2019). 强者生 弱者亡 流媒体音乐盛世背后的恐与慌. [online] Sound.zol.com.cn. Available at: http://sound.zol.com.cn/682/6828057_all.html [Accessed 2 Apr. 2019]. Congress.gov. (2018). H.R.1551 - 115th Congress (2017-2018): Orrin G. Hatch-Bob Goodlatte Music Modernization Act. [online] Available at: https://www.congress.gov/bill/115th-congress/house-bill/1551 [Accessed 23 Apr. 2019]. NCAC.gov. (2015). 网络音乐版权专项整治行动. [online] http://www.ncac.gov.cn/chinacopyright/contents/483/255725.html Available [Accessed at: 24 Apr. 2019]. RIAA. (2017). 2017 RIAA Shipment & Revenue Statistics | RIAA - RIAA. [online] Available at: https://www.riaa.com/reports/2017-riaa-shipment-revenue-statistics-riaa/ [Accessed 24 Apr. 2019]. 11
